- What Automotive Properties has agreed to sell an automotive property near Toronto
- Why Proceeds will go toward repaying the REIT’s revolving credit facilities
- What next The deal is expected to close in the fourth quarter
Automotive Properties Real Estate Investment Trust has agreed to sell an automotive dealership property in Markham, Ont., for $54m.
The sale price represents a roughly 3.36% capitalization rate. The buyer is a member of Dilawri Group, the REIT’s largest shareholder.
An affiliate of Dilawri leases the 6-acre property, at 8210 and 8220 Kennedy Road and 7 and 13/15 Main Street, under a lease that runs until 2065.
The Toronto-based REIT expects the transaction to close in the fourth quarter. Net proceeds will be used to repay the firm’s revolving credit facilities.